AOF Principles of Finance Course Scope and Sequence

Transcription

1 AOF Principles of Finance June 2013 Principles of Finance gives students a thorough introduction to the concepts, tools, and institutions of finance and serves as a foundation for the core courses offered by the Academy of Finance. Principles of Finance begins with the basics of financial literacy and the function of finance in society. Students then study income and wealth, including budgeting, personal banking, credit and borrowing, and planning for retirement. Next, students examine financial institutions and the role of finance in organizations. They learn about common methods by which businesses raise capitalipos, selling stocks and bonds, and short-term financingand they study key investment-related terms and concepts, including the time value management, taxes, and ethics. They research how technological and international innovations have changed the financial services field. As an integral part of the course, students also participate in an in-depth study of a particular finance topic. Students use a project-based learning approach to become personal finance experts and lead a schoolwide exhibition on issues critical to financial literacy. Working in groups of three or four, students choose a topic to investigate and examine their topic from various perspectives, including its importance to an individuals understanding of finance as well as its relevance to the finance industry and society. Groups synthesize their learning and create a three-panel display board, public service brochure, and talking points, all of which they present to an invited audience at a financial literacy fair. Finally, students explore the types of careers that exist in finance today. This course is expected to take a total of minute class periods. Unit 1: Getting Started Lesson 1: Course Introduction Deduce the skills and knowledge of finance needed to be successful in an authentic project Identify general finance terms with which to build a taxonomy Lesson 2: Introduction to Finance Explain what finance is and why learning about it is valuable Identify how financial knowledge can be applied to real life Explain how the time value of money is a fundamental component of financial literacy Describe the financial services industry and the financial system that it serves Lesson 3: Financial Intermediaries Estimated # of Class Periods: 6 Copyright National Academy Foundation. All rights reserved. 1

2 AOF Principles of Finance! Identify the functions of different types of financial intermediaries Explain how financial intermediaries benefit individuals, businesses, and the economy Define capital and describe its importance to financial intermediaries Unit 2: Personal Finance Lesson 4: Wealth, Income, and Cash Flow Distinguish among wealth, income, and cash flow Define money and describe its source and uses Explain how money functions Lesson 5: Personal Budgeting Identify the components of a personal budget and strategies for staying within budget Describe the purpose for setting financial goals Develop short-, mid-, and long-term financial goals Evaluate the importance of financial planning Lesson 6: Banking Estimated # of Class Periods: 7 Evaluate different banking institutions and the services that they offer Compare and contrast various financial services products Explain how compound interest is a key benefit of saving Explain the impact of technology on banking Identify the components of a bank statement Demonstrate the ability to reconcile a bank statement Lesson 7: Credit and Debt Estimated # of Class Periods: 8 Define debt and differentiate between good debt and bad debt Copyright National Academy Foundation. All rights reserved. 2

3 AOF Principles of Finance! Define credit and explain its purpose Describe the positive and negative effects of credit use and the impact on credit histories and scores Explain how interest rates work Lesson 8: Good Practices in Personal Finance Estimated # of Class Periods: 8 Describe general principles for practicing successful personal finance Summarize key concepts on the subject of financial literacy Unit 3: Financial Institutions Lesson 9: Investment Banking List characteristics of an investment bank Explain how an investment bank differs from a commercial bank Describe the functions performed by investment banks List methods for raising capital Describe the evolution of investment banking Lesson 10: Financial Markets Estimated # of Class Periods: 7 Describe the key risks and returns associated with investing Identify the major financial markets Explain the importance of financial markets to our economy Evaluate the different financial securities and their purposes Unit 4: Key Influencers of Financial Decisions Lesson 11: Forms of Business Ownership Describe each form of business ownership Copyright National Academy Foundation. All rights reserved. 3

4 AOF Principles of Finance! Explain why there are different forms of business ownership Compare the advantages and disadvantages of each type of business ownership Lesson 12: Ethics in Finance Identify and describe significant social and ethical business issues Identify the kinds of ethical dilemmas that financial professionals may face Explain how businesses should respond to ethical problems when they occur Explain the consequences that can accrue to businesses that engage in unethical practices Lesson 13: Display understanding of the need for businesses to constantly be aware of and ready to respond to changes in regional, national, and global business environments Explain how technological innovations have changed the role of finance in organizations Explain the various financial factors that affect decision making, including risk management and taxes Summarize how government regulations can affect business organizations Unit 5: Careers in Finance and Course Closure Lesson 14: Working in Finance Identify the types of jobs that are available in the finance industry Describe entry-level jobs in the finance industry and corresponding qualifications Evaluate which finance jobs are most suitable based on personal interests and skills Develop effective responses to common job interview questions Lesson 15: Learning from Industry Experts Evaluate personal experience and qualifications for potential internship and employment opportunities in finance Demonstrate understanding of potential internship and employment opportunities in finance Copyright National Academy Foundation. All rights reserved. 4

5 AOF Principles of Finance! Develop a personal educational and career path for careers in the finance industry Develop a resume Lesson 16: Project Presentation and Course Closure Demonstrate the ability to give a professional presentation Evaluate personal experience and performance in the course Monitor personal success in learning the key principles of finance Summarize key learning across the whole subject of finance Copyright National Academy Foundation. All rights reserved. 5

6 AOF: Financial Services June 2013 Financial Services provides students with an overview of banks and other financial services companies. The course begins by introducing students to the origins of money and banking, and then examines the early history of banking in the United States. Students move into an in-depth study of the financial services industry and explore the types of companies that make up this industry. Students learn about the services offered by such companies and analyze the ways these companies earn profits. This course also introduces students to the main concepts behind investing and discriminates among different ways to invest money. Students examine contemporary issues including the level of personal saving in the United States, ethics in the financial services industry, Students apply what they have learned over the course to the culminating project, making recommendations for two financial services products that will serve to both benefit their own community and be profitable at the same time. Working in strategy teams, students identify needs in their community that might be addressed through two financial services products. They then develop these ideas into a formal presentation that they give before an invited audience of community leaders. Finally, students get a chance to consider the types of careers that exist in financial services companies. This course is expected to take a total of minute class periods. UNIT 1: GETTING STARTED Lesson 1: Course Introduction Deduce the skills and knowledge about financial services needed to be successful in an authentic project Identify general financial services terms with which to build a taxonomy Lesson 2: Introduction to Financial Services Describe what is included within the financial services industry Make inferences about the many ways in which the financial services industry serves society Lesson 3: Types of Financial Services Companies Compare and contrast different types of financial services companies Compare and contrast the services offered by different types of financial services companies Evaluate the positive and negative effects of offering similar services between different types of financial services companies Copyright National Academy Foundation. All rights reserved.

7 AOF Financial Services! UNIT 2: BANKING Lesson 4: The Origins of Money and Banking Describe the main characteristics of money and explain why it is important for money to have these characteristics Explain the idea of a bartering system and compare its advantages and disadvantages Describe the evolution of coins and paper money Describe the evolution of banking and its role within the finance industry Lesson 5: Banking in the United States Summarize the development of the US banking system Describe the primary role of banks in the economy Explain what the Federal Reserve is, what it does, and how it works Lesson 6: Services Provided by Banks Describe how banks provide ways for individuals to use their own money Explain how banks provide additional money for individuals to use List services offered by banks UNIT 3: FINANCIAL ANALYSIS STRATEGIES Lesson 7: Introduction to Investing Describe the different reasons that people invest Compare and contrast the different types of investment products Explain basic investment concepts, such as risk tolerance, liquidity, compounding interest, and deferred taxation Copyright National Academy Foundation. All rights reserved. 2

8 AOF Financial Services! Lesson 8: Services Provided by Investment Companies Summarize the various services offered by investment companies Describe the reasons why investment companies offer so many different services and products UNIT 4: CAPITAL AND FINANCIAL MARKETS Lesson 9: Alternative Types of Financial Services Companies List and define alternative types of financial services companies Describe the function and services of alternative types of financial services companies Compare and contrast the different functions and purposes of alternative types of financial services companies to society Lesson 10: Insurance Describe different types of insurance and summarize their purpose Explain the importance of having insurance to protect individuals from certain risks Demonstrate the ability to conduct an informational interview with a professional Describe what an insurance agent does and the skills, experience, and educational background necessary to enter the profession UNIT 5: CONTEMPORARY BANKING ISSUES Lesson 11: Ethics and Financial Services Compare and contrast the terms ethics, morals, and values Evaluate ethical scenarios and develop personal positions with respect to specific dilemmas Identify ethical and moral challenges faced by financial services professionals Copyright National Academy Foundation. All rights reserved. 3

9 AOF Financial Services! Lesson 12: Financial Services and Society Describe the Equal Credit Opportunity Act and discuss its importance Explain the major social issues that affect the financial services industry Lesson 13: Saving Explain why many young people are unprepared for their financial future Compare and contrast different types of savings accounts and the interest rates that they offer Describe how savings accounts can help you reach your financial goals Lesson 14: Debt Estimated # of Class Periods: 6 Discuss the impact credit and debt have on their lives Describe the history of debt and understand how it has affected our society Explain how to become a responsible user of credit Lesson 15: Regulation in the Financial Services Industry Describe the concept of regulation Explain the purpose of regulation Compare and contrast the agencies responsible for regulation Evaluate why financial institutions should or should not be regulated UNIT 6: CAREERS IN FINANCIAL SERVICES Lesson 16: Culminating Project Estimated # of Class Periods: 7 Copyright National Academy Foundation. All rights reserved. 4

10 AOF Financial Services! Demonstrate the ability to apply financial services concepts to particular community needs Evaluate the local community where they live and its need for financial services Develop a responsive set of financial services products for the local community Design an effective proposal from an investment firm offering financial services products to the local community Lesson 17: Working in the Industry List the types of jobs that are available in the financial services industry Describe entry-level jobs in the industry and corresponding qualifications Evaluate which jobs are most suitable based on personal interests and skills Develop effective responses to common job interview questions Lesson 18: Learning from Industry Experts Evaluate personal experience and qualifications for potential employment opportunities Display understanding of potential employment opportunities Develop a personal educational and career path for financial services Create a profile for an appropriate college choice Lesson 19: Project Presentation and Course Closure Estimated # of Class Periods: 8 Demonstrate the ability to give a professional presentation Evaluate personal experience and performance in the course Summarize key learning across the whole subject of financial services Monitor personal success in learning about financial services Copyright National Academy Foundation. All rights reserved. 5

11 AOF Principles of Accounting June 2013 Principles of Accounting provides students with an understanding of the critical accounting process and how it facilitates decision making by providing data and information to internal and external stakeholders. Students learn that accounting is an integral part of all business activities and that accounting plays an important role in the everyday accountability of a business as well as in high-stakes decision making and analysis. In addition, students learn how to apply technology to accounting by creating formulas and inputting data into spreadsheets. Students apply the basic concepts of accounting to the culminating project, creating and running a real estate development business. Students play a modified version of the game Monopoly 1 over the duration of the course and record their evolving financial positions on various financial statements, analyze their data, and assess They then prepare and give a presentation at an accounting fair for their peers, family, and members of the local business community. Students also examine career opportunities and the professional certifications and designations earned by individuals in the accounting profession. This course is expected to take a total of minute class periods. UNIT 1: GETTING STARTED Lesson 1: Course Introduction Deduce the skills and knowledge about accounting needed to be successful in an authentic project Identify general accounting terms with which to build a taxonomy Lesson 2: Business Forms and Types Describe and provide examples of business forms and types Compare and contrast the advantages of different business forms Identify appropriate forms and types for businesses in a variety of scenarios Lesson 3: The Regulatory Environment 1 The Monopoly name and logo, as well as each of the distinctive elements of the board and playing pieces, are trademarks of Hasbro for its property trading game and game equipment. Hasbro, all rights reserved. Copyright National Academy Foundation. All rights reserved.

12 AOF Principles of Accounting List the major policy-setting and enforcement bodies in accounting and describe their respective roles Explain how the various regulatory agencies influence each other as well as the world of accounting UNIT 2: THE ACCOUNTING CYCLE Lesson 4: The Accounting Cycle Begins Estimated # of Class Periods: 10 Describe the accounting cycle Demonstrate the ability to analyze and record financial events Explain the importance of journalizing Demonstrate the ability to journalize transactions Lesson 5: General Ledger and Trial Balance Estimated # of Class Periods: 6 Demonstrate the ability to prepare a trial balance Display understanding of the methodology underlying account balancing Demonstrate the ability to locate posting errors in the general ledger Demonstrate the ability to balance accounts Lesson 6: The Income Statement Estimated # of Class Periods: 6 Demonstrate the ability to prepare an income statement Display understanding of the steps necessary to prepare an income statement Lesson 7: Demonstrate the ability to prepare a statement of chang Copyright National Academy Foundation. All rights reserved. Page 2 of 5

13 AOF Principles of Accounting Lesson 8: The Balance Sheet Describe the key characteristics of a balance sheet Demonstrate the ability to prepare a balance sheet Display understanding of the steps necessary to prepare a balance sheet Lesson 9: The Accounting Cycle Closes Estimated # of Class Periods: 6 Describe what is meant by closing the books and explain why it is important Demonstrate the ability to close the books in a given scenario UNIT 3: FINANCIAL STATEMENT ANALYSIS Lesson 10: Income Statement and Analysis Demonstrate the ability to compute return on sales (ROS) ratios Demonstrate the ability to analyze income statements using the ROS ratio and horizontal and vertical analyses Lesson 11: Demonstrate the ability to analyze SCOEs Identify the key differences between investments and net income Lesson 12: Analysis of Balance Sheet Demonstrate the ability to analyze a balance sheet Demonstrate the ability to compute the current ratio and working capital in a variety of given scenarios Copyright National Academy Foundation. All rights reserved. Page 3 of 5

14 AOF Principles of Accounting Lesson 13: Using Financial Statements to Make Decisions Identify issues relevant to specific decision makers in a given scenario and explain the corresponding rationales Demonstrate the ability to analyze financial statements Demonstrate the ability to write an effective business letter UNIT 4: CONTROLS Lesson 14: Internal Controls Explain the importance of internal controls and list key accounting controls Identify internal controls in various scenarios Lesson 15: External Controls Compare and contrast internal and external controls Demonstrate the ability to analyze financial documents to find possible errors Demonstrate the ability to apply controls to companies in various scenarios Demonstrate the ability to present audits effectively in writing and orally UNIT 5: CAREER DEVELOPMENT IN ACCOUNTING Lesson 16: Working in the Industry Compare and contrast various career opportunities in accounting Describe jobs in the industry and corresponding qualifications and salaries Evaluate which jobs are most suitable based on personal interests and skills Lesson 17: Learning from Industry Experts Copyright National Academy Foundation. All rights reserved. Page 4 of 5

15 AOF Principles of Accounting Evaluate personal experience and qualifications for potential employment opportunities Display understanding of potential employment opportunities Develop a personal educational and career path for accounting Demonstrate the ability to create a profile for an appropriate college choice Lesson 18: Project Presentation and Course Closure Estimated # of Class Periods: 7 Demonstrate the ability to present the results of a detailed accounting scenario Evaluate personal experience and performance in the course Monitor personal success in learning about accounting Summarize key learning across the whole subject of accounting Copyright National Academy Foundation. All rights reserved. Page 5 of 5

16 AOF Financial Planning June 2013 Financial Planning provides students with an overview of the job of a financial planner. Students look at financial planning in an objective way that requires them to regard all aspects of financial planning as relevant to a potential client. Students learn about the importance of financial planning in helping people reach their life goals, how to set personal financial goals and a budget, the ethical code of certified financial planners, time-and-money relationships, and tax reduction strategies. The course includes lessons on saving, borrowing, credit, and all types of insurance. It covers various types of investments, including income and growth investments. The course also discusses retirement and estate planning. Students apply their knowledge in an integrated culminating project, in which they create a basic financial plan for themselves as they imagine themselves to be at the age of 25. The project allows students to actively practice the key services provided by financial planners. At the end of selected units, students use their knowledge to complete sections of a financial planning template, setting financial goals, determining insurance needs, creating investment strategies, and planning for retirement. In addition to giving students a forum in which they can demonstrate their learning, the project provides a framework for students to create a pathway to financial independence. This course is expected to take a total of minute class periods. UNIT 1: GETTING STARTED Lesson 1: Course Introduction Deduce the skills and knowledge about financial planning needed to be successful in an authentic project Identify general financial planning terms with which to build a taxonomy Lesson 2: Introduction to Financial Planning Evaluate how the Display understanding of key terms in financial planning Demonstrate the ability to manage and conduct an informational interview with a certified financial planner Create a concise outline describing what a financial planner does and the skills, experiences, and educational background necessary to enter the profession Lesson 3: The Importance of Financial Planning Copyright National Academy Foundation. All rights reserved.

17 AOF Financial Planning! Explain the key reasons why people undertake financial planning List the key milestones in life, and understand how planning can lead to their successful outcome Display understanding of the reasons why not planning can be a risk UNIT 2: THE FINANCIAL PLANNING PROCESS Lesson 4: Components of a Financial Plan Describe how financial planning strategies help individuals achieve key milestones in life Display understanding of how financial planning helps protect against common risks List the different components of a financial plan, and explain the purpose of each Lesson 5: Factors That Shape Personal Financial Goals Explain the differences between needs and wants Display understanding of the way values play a role in determining needs and wants Create personal goals that are specific, measurable, attainable, realistic and time-bound (SMART) Lesson 6: Setting Personal Financial Goals Explain why people set goals and discuss the implications of not setting goals and/or failing to Describe the key goal of financial independence Explain the differences between long-, mid-, and short-term goals and how to plan for them Create personal financial goals and prioritize them by importance Lesson 7: Creating a Personal Budget financial goals Copyright National Academy Foundation. All rights reserved. 2

18 AOF Financial Planning! Define the terms net worth, fixed expenses, and variable expenses Describe the components of a balance sheet, cash flow statement, and personal budget Create a sample balance sheet and cash flow statement UNIT 3: BORROWING AND CREDIT Lesson 8: Borrowing Money Identify criteria used to decide whether and when borrowing money is good financial strategy Define key terms related to borrowing Display understanding of the risks of borrowing Compare and contrast the key sources of lending Identify the criteria lenders use when evaluating loan applications Lesson 9: Credit Cards Display understanding of how credit cards work and how they can build credit history Describe the dangers of credit card misuse Explain consumer rights in regard to credit cards Create instructional materials to explain the proper use of credit cards to others UNIT 4: INSURANCE Lesson 10: Insurance and Financial Planning Display understanding of the critical and pervasive role that insurance plays in mitigating financial risk Describe insurance protections provided by certain types of insurance, and evaluate whether certain age groups need each type Compare and contrast the risks that different types of insurance cover Lesson 11: Auto and Property Insurance Copyright National Academy Foundation. All rights reserved. 3

19 AOF Financial Planning! Explain why auto and property insurance rates differ depending on a range of factors Develop knowledge-based recommendations on the importance of auto and property insurance coverage and their key components Lesson 12: Health and Disability Insurance Display understanding of the importance of health insurance in protecting against the risk of injury or illness Explain the importance of disability insurance in protecting against the risk of lost wages due to injury or illness Explain the differences and similarities between the different types of health insurance plans Lesson 13: Life Insurance Describe the role that life insurance plays in a financial plan Identify the different types of life insurance Demonstrate the ability to match life insurance policy types to client scenarios based on specific client needs and explain the rationale Evaluate insurance policies and deduce which one is appropriate for himself or herself at age 25 UNIT 5: INVESTING Lesson 14: Investment and Compound Interest Explain how compounding interest makes it beneficial to begin investing early Describe the many reasons why people invest Identify key characteristics of different investment types Describe a set of recommendations for investment types based on specific client needs Lesson 15: Income Investment Products Copyright National Academy Foundation. All rights reserved. 4

20 AOF Financial Planning! Explain the major income investment products (passbook savings, CDs, bonds, and money market accounts) Compare and contrast the characteristics and uses of major income investment products Develop responses to common questions about income investment products posed by hypothetical clients Lesson 16: Stocks, Bonds, and Mutual Funds Describe and compare the characteristics, advantages, and disadvantages of the key growth investment products (stocks, bonds, and certain mutual funds) Develop appropriate recommendations for investment products to meet specific short-, mid-, and long-term goals Describe where and how growth investment products can be purchased Lesson 17: Housing Describe the role that housing plays in a financial plan Compare the benefits and drawbacks of both renting and owning a home Explain what to look for when buying or renting a home UNIT 6: RETIREMENT AND ESTATE PLANNING Lesson 18: Planning for Retirement Compare the differences between a comfortable and well-planned retirement and one for which there was not sufficient preparation Describe the key retirement planning tools and strategies, such as IRAs, annuities, and other longterm investments E Lesson 19: Estate Planning Describe key concepts in estate planning, such as wills, powers of attorney, living wills, and trusts Copyright National Academy Foundation. All rights reserved. 5

21 AOF Financial Planning! Explain the risks of not having a living will and granting power of attorney Summarize the tax advantages of trusts when bequeathing assets UNIT 7: CONTEMPORARY ISSUES IN FINANCIAL PLANNING Lesson 20: Tax Reduction Strategies Explain key concepts within income tax codes Describe the basic process involved in filing income tax forms Develop effective tax reduction strategies that meet the needs of hypothetical clients Lesson 21: Ethics Summarize a code of ethics for financial planners Develop examples of how ethics play a role in real-life financial planning situations Demonstrate the ability to make an ethical decision in a complex situation UNIT 8: CAREER DEVELOPMENT IN FINANCIAL PLANNING Lesson 22: Working in the Industry List the types of jobs that are available in the industry Describe entry-level jobs in the industry and corresponding qualifications Evaluate which jobs are most suitable based on personal interests and skills Develop effective responses to common job interview questions Lesson 23: Learning From Industry Experts Evaluate personal experience and qualifications for potential employment opportunities Copyright National Academy Foundation. All rights reserved. 6

22 AOF Financial Planning! Display understanding of potential employment opportunities Develop a personal career path for financial planning Create a company profile Lesson 24: Project Presentation and Course Closure Estimated # of Class Periods: 6 Demonstrate the ability to give a professional presentation Monitor personal success in learning about financial planning Summarize key learning across the project and the whole subject of financial planning Copyright National Academy Foundation. All rights reserved. 7